Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will ensure that HMRC applies FCA definitions of financial vulnerability when considering whether to refer customers to its extra support team.

HMRC continually review how to identify customers in financial hardship so that it can offer support to them. As part of this work, they work closely with Government departments and other stakeholders, including the debt advice sector, for insights on good practice which they mirror to support customers. The department has trained collectors to identify vulnerable customers who, when identified, are referred to HMRC’s established Extra Support team for assistance.

HMRC also work to meet the Financial Conduct Authority’s guidelines where practicable. HMRC are the first Government department to become a referral partner for the Money Adviser Network, a pilot led by the Money and Pensions Service. The partnership helps HMRC test a better way to refer Tax Credits debtors to free and independent debt advice. It is a priority for HMRC to help their customers to access specialist debt advice support that is available to them; as a responsible creditor, HMRC recognise that customer debt worries often extend beyond the debt that they have with the department.